Colombia Expat Forum

fecherklyn
Joined 2015
Posts: 1370

8 years ago

What happened? Colombian car insurance

8 years ago

What has happened?

My Colombian car insurance has just gone up by more than 30% and I would like to know why. For this reason, I invite Expat Exchange’s Colombia Forum members to give me their comments and ideas. Are you finding the same increases, and if so, do you think they are justified?

Here is the background of my case. As you will see from the information below, my insurer (Allianz Seguros S.A.) and carmaker (Kia Motors), both appear to be involved. I have sent a copy of this message to both companies hoping they will be able to clarify the matter and I will post their replies if I receive any. In the meantime, give my message a glance and let me have your comments if you have any.

The progression of my car insurance costs. My car is a 2010 model Kia Sportage which has never been involved in any accident, or incidence. Similarly, I have not been involved in any infractions.
The insurance is a voluntary “fully comprehensive” (supplement to the compulsory Governmental “SOAT” insurance) insurance from Allianz Seguros S.A. with the following cover and premiums:

- 2011, valor asegurado COP 62.2 Mn, annual premium COP 1,878,390
- 2012, valor asegurado COP 56.1 Mn, annual Premium COP 1,710,499
- 2013, valor asegurado COP 49.8 Mn, annual Premium COP 1,271,332
- 2014, valor asegurado COP 42.0 Mn, annual Premium COP 1,397,837
- 2015, valor asegurado COP 38.9 Mn, annual Premium COP 1,409,526
- 2016, valor asegurado COP (*), annual Premium COP 1,832,083
(*) “Valor asegurado” not yet advised but it will be inferior to 2015.

As you can see, the 2016 premium as already 30% higher than the 2015 premium even though the coverage (risk?) will be lower.

The explanation for this increase.
Allianz recognize this as being a substantial increase and claim it is largely due to the difficulty in obtaining spare parts from Korea and their higher prices (Exchange rate movements?). Apparently, this is a common problem concerning all the Korean manufactured cars.

So, is this just a Colombian problem (XRate volatility?), or is it a worldwide phenomenon, or did I just get unlucky? What I do know is that my incomes are not going up at 30+ % p.a.

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